Intel Corporation (INTC), JPMorgan Chase & Co. (JPM), Bank of America Corp (BAC): Taking the Long View on the Dow (.DJI)’s Big Stories

Page 1 of 2

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

With little forthcoming on the economic data front and low volume in trading, the Dow Jones Industrial Average is looking for some direction this morning. So far the index has waffled between positive and negative territory, with a measly 18-point loss as of 11:45 a.m. EDT. So what’s an investor to do on days like this? Today is the perfect day to recalibrate your focus back to long-term success if you’ve been caught in the whirlwind of speculation this summer.

The big story

Since May, investors and analysts have been trying to read the Federal Reserve’s crystal ball and determine when tapering of the current stimulus policy will begin. The result has been a dizzying spate of ups and downs for the market, all driven by speculation and fear. And now that Mr. Market has entered the lazy days of late summer, lower trading volumes will generate more volatility and exaggerate the issue. A suggestion: Ignore the Fed fodder.

Words versus proof

Intel Corporation (NASDAQ:INTC)

Intel Corporation (NASDAQ:INTC) is the big gainer of the Dow components this morning. Up more than 3% so far, the tech company is soaking in the good vibes from an analyst upgrade. Piper Jaffray analyst Gus Richard stated that the death of the personal computer has been overly exaggerated as support for his upgrade of Intel Corporation (NASDAQ:INTC) shares to neutral, as well as his bump in target price by $2, to $22.

Though Richard may be correct, seeing that most corporate computing needs will still rely on PCs for the foreseeable future, the truth remains that Intel Corporation (NASDAQ:INTC) revenue has declined for two straight years. The chipmaker has announced a new line of processors for tablets, called Bay Trail, which is expected to see plenty of use — placing Intel Corporation (NASDAQ:INTC) firmly into the tablet market. But investors shouldn’t take Richard’s word or the announcement of a new tablet processor at face value.

Though the move to tablets may be a big one for the chipmaker, Bay Trail is still an unproven transition. Investors shouldn’t put all of their eggs into this one basket.

Being No. 1 is not always so great

JPMorgan Chase & Co. (NYSE:JPM) is back in the news with another probe into its business practices. This time the Securities and Exchange Commission is looking into the bank’s hiring practices in China based on allegations of bribery to gain multimillion-dollar contracts. The probe revolves around the bank’s hiring of two children of highly influential Chinese officials — the son of a former Chinese banking regulator, who is now the chairman of state-owned financial giant China Everbright Group, as well as the daughter of a Chinese railway official.

Prior to the new scandal, JPMorgan Chase & Co. (NYSE:JPM) announced that it had raised its legal reserves to $6.8 billion in anticipation of legal matters stemming from regulator probes into its operations. So far those probes have led to criminal charges against two former traders involved in covering up the extent of losses from last year’s London Whale trading scandal. But the increase in legal reserves put JPMorgan Chase & Co. (NYSE:JPM) in contention for the No. 1 spot in legal losses from current leader Bank of America Corp (NYSE:BAC).

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!